Ainos, Inc.
AIMDWBusiness Summary
Ainos, Inc. is a dual-platform company focused on advancing artificial intelligence-based smelltech technologies and immune therapeutics. The company's primary strategic focus is the commercialization of its proprietary scent digitization platform, AI Nose, while also developing therapeutic assets based on its low-dose oral interferon program, VELDONA® 1. The AI Nose platform is an AI-based electronic olfaction system that integrates gas sensor arrays with proprietary artificial intelligence models, referred to as a smell language model ("SLM"), to digitize scent and volatile organic compound (VOC) signals into a machine-readable data format called Smell ID 2. VELDONA® is a low-dose oral interferon alpha formulation delivered to the oral cavity, designed to modulate immune responses 3.
The core business model revolves around generating revenue from sales of AI Nose hardware systems and recurring service-based offerings associated with its SmellTech platform 4. The company also generates revenue from VELDONA® Pet supplements and previously from COVID-19 Antigen Rapid Test Kits 5. Ainos operates with a capital-efficient model, primarily conducting research and development and certain operating functions in Taiwan, leveraging its position as a global technology supply chain hub and access to a skilled workforce 6. Manufacturing of AI Nose hardware and POCT product candidates is outsourced to Taiwan Carbon Nano Technology Corp. (TCNT), while VELDONA® human-use drug candidates are manufactured by Swiss Pharmaceutical Co., Ltd., and VELDONA® pet supplements by third-party manufacturers in Taiwan, including TCNT 7. Commercialization is supported by relationships with third parties such as Inabata & Co. Ltd., Topco Scientific Co., Ltd., Trusval Technology Co., Ltd., Solomon Technology Corporation, Kenmec Mechanical Engineering Co., Ltd., and Topmed International Biotech Co., Ltd. 8.
The AI Nose platform is designed to enable machines to detect, classify, and interpret scent and VOC signals in real time, translating complex scent signals into a structured, machine-readable data format 9. It is positioned as a connected, trainable SmellTech sensing platform with portable sensor hardware capable of parts-per-billion-level sensitivity, cloud connectivity, and proprietary AI models 10. Initially developed for healthcare-related settings like point-of-care testing (POCT) for ventilator-associated pneumonia, women's vaginal health, and sexually transmitted infections, its application has expanded into industrial environments such as semiconductor manufacturing, robotics, and smart manufacturing 11. The VELDONA® platform focuses on selected rare, autoimmune, and infectious disease indications, including oral warts in HIV-seropositive patients, Sjögren's syndrome, and feline chronic gingivostomatitis (FCGS) 12. The U.S. Food and Drug Administration has granted orphan drug designation for VELDONA® as a potential treatment for oral warts in HIV-seropositive patients 13.
For the fiscal year ended December 31, 2025, total revenues were $124,157 14, a significant increase from $20,729 in 2024 15. This increase was primarily driven by AI Nose related programs, which generated $123,360 in revenue in 2025, compared to nil in 2024 16. Pet supplements contributed $797 in 2025, down from $20,321 in 2024 17. The company ceased selling COVID-19 Antigen Rapid Test Kits in the first quarter of 2024, which had generated $408 in 2024 18. Cost of revenues decreased to $21,246 in 2025 from $52,595 in 2024 19, primarily due to the change in product mix. Gross profit for 2025 was $102,911 20, a substantial improvement from a gross loss of $(31,866) in 2024 21. Operating loss slightly increased to $13,990,408 in 2025 from $13,841,204 in 2024 22. Net loss for 2025 was $14,771,012 23, a slight decrease from $14,863,161 in 2024 24. Diluted EPS was $(3.46) in 2025, compared to $(7.82) in 2024 25. Cash and cash equivalents stood at $417,353 as of December 31, 2025, down from $3,892,919 at December 31, 2024 26. Total liabilities were $13,308,526 in 2025, compared to $13,303,889 in 2024 27.
During 2025, Ainos accelerated the transition of the AI Nose platform to early-stage commercialization, focusing on industrial and infrastructure-oriented applications 28. This included securing an initial commercial order of approximately $2.1 million over three years from a leading semiconductor packaging and testing customer for 1,400 AI Nose units 29. A collaboration with a Japanese service robotics partner led to pilot deployments of AI Nose across seven operational sites in Japan 30. In the VELDONA® program, clinical preparation and ongoing studies in Taiwan for oral warts in HIV-seropositive patients, Sjögren's syndrome, and FCGS were advanced 31. The company also marketed VELDONA® Pet supplements in Taiwan on a limited scale 32.
Business Outlook
Ainos's strategic outlook is centered on scaling the AI Nose platform as a SmellTech platform that digitizes scent as a machine-readable data modality 33. Following initial industrial validation in 2025, the company's priorities include expanding partner-led deployments, increasing scent data volume to refine the smell language model, and advancing commercialization through a combination of hardware sales and service-based offerings 34. Concurrently, Ainos plans to manage healthcare-related programs, including VELDONA®, in a selective and capital-efficient manner, with an emphasis on partnerships and out-licensing 35.
A major growth area for Ainos is the expansion of AI Nose into industrial environments, particularly semiconductor manufacturing, robotics, and smart manufacturing settings 36. The company secured an initial commercial deployment under a multi-year subscription agreement with a leading semiconductor packaging and testing company in 2025, totaling approximately $2.1 million over three years for 1,400 AI Nose systems 37. Additionally, a commercial arrangement with a semiconductor engineering and systems integration partner includes a contracted minimum order commitment of 600 AI Nose units for deployment in front-end wafer fabrication environments 38. Pilot deployments of AI Nose across seven operational sites in Japan through a collaboration with a Japanese service robotics partner are also underway to evaluate real-world performance and generate data for model refinement and commercial scaling 39. These deployments are expected to generate real-world scent data across diverse operating conditions, which will be used to refine models, improve classification performance, and broaden the range of detectable patterns, creating a data-driven feedback loop 40.
In the healthcare sector, Ainos continues to evaluate healthcare-adjacent use cases for AI Nose, including senior care hygiene monitoring, women's vaginal health, selected sexually transmitted infections, and environmental control and monitoring in hospital operations 41. For the VELDONA® therapeutic programs, the company is focusing on selected rare, autoimmune, and infectious disease indications such as oral warts in HIV-seropositive patients, Sjögren's syndrome, and feline chronic gingivostomatitis (FCGS) 42. Key clinical and partnering milestones for VELDONA® are currently expected to occur over the 2026–2027 timeframe, subject to regulatory review and study progress 43. The company intends to primarily pursue out-licensing and partnership opportunities to advance the further development and commercialization of the VELDONA® assets 44.
Ainos expects its research and development (R&D) expenses to continue to grow as it further develops AI Nose programs and VELDONA® drug candidates 45. The company's strategy emphasizes capital efficiency through a combination of geographic footprint, outsourced manufacturing, and third-party commercial relationships 46. Manufacturing of AI Nose hardware and POCT product candidates is outsourced to Taiwan Carbon Nano Technology Corp. (TCNT), and VELDONA® human-use drug candidates are manufactured by Swiss Pharmaceutical Co., Ltd. 47. The company also relies on third-party manufacturers in Taiwan, including TCNT, for VELDONA® pet supplement products 48.
For future liquidity, Ainos anticipates that cash reserves, business revenues, and potential debt financing through convertible and non-convertible notes will fund its operations over the next twelve months 49. The company expects primary uses of cash to fund operations as it continues to grow its business, requiring a significant amount of cash for working capital and capital expenditures to support the growth of its commercial infrastructure 50. Selling, general and administrative expenses and R&D expenses are expected to increase to support product development and commercialization roadmaps 51. The company also plans capital expenditures for investments in corporate facilities and equipment 52. From January 1, 2026, to March 30, 2026, the company sold 283,336 shares of common stock under an At-the-Market Offering Agreement, generating net proceeds of approximately $601,600 53. Additionally, on March 27, 2026, Ainos entered into a loan agreement with ASE Test, Inc., a related party, for an aggregate principal amount of NT$90 million (approximately US$2,820,000) 54, bearing interest at 2.5% per annum, payable in full one year after the drawdown date 55.
Risk Factors
Ainos faces significant risks related to its limited operating history and financial position, including a history of operating losses that are expected to continue, with cumulative losses of $67,520,328 as of December 31, 2025 56. The company has generated very little revenue from product sales and may never become profitable, being dependent on obtaining additional funding from outside sources, including the issuance of securities, to continue operations 57. The AI Nose platform is still under development and early commercialization, lacking a significant history of large-scale commercial adoption, recurring revenue, or long-term customer retention, making demand, pricing, renewal rates, and long-term profitability difficult to predict 58. The market for AI-enabled scent digitization and SmellTech solutions is nascent and may not develop as expected, or may adopt alternative technologies, limiting demand for AI Nose 59. The AI Nose platform may also fail to achieve acceptable accuracy, reliability, or performance across various use cases and environments, and may contain undetected errors, defects, or limitations that could impair adoption or result in liability 60. The performance of AI Nose relies on sufficient and effective data collection and model training, which may be insufficient or ineffective, and customers may be unwilling or unable to integrate AI Nose into existing systems or workflows 61. Expansion into industrial and other non-healthcare environments may expose AI Nose to new and unforeseen risks 62. The company's POCT and VELDONA® candidates are in early stages of clinical development, with uncertain outcomes, and their successful development and commercialization are critical to the business 63. Clinical product development is a lengthy, expensive, and uncertain process, with potential for delays due to regulatory hurdles, patient enrollment challenges, supply chain issues, or unforeseen events 64. Data from clinical trials conducted outside the United States, such as in Taiwan, may not be accepted by the FDA, requiring additional costly and time-consuming U.S.-based trials 65. Even if products receive marketing approval, they may fail to achieve market acceptance by physicians, patients, and third-party payors, or face unfavorable pricing regulations and reimbursement policies 66. Product liability lawsuits pose an inherent risk, potentially leading to substantial liabilities, decreased demand, reputational harm, and significant financial and management resource diversion 67. The company relies heavily on third-party components, cloud infrastructure, and manufacturers, increasing the risk of disruptions, errors, or insufficient supplies 68. Changes in or loss of third-party licenses could make software inoperable or reduce performance, leading to increased R&D costs or decreased demand 69. The pet health supplement and POCT markets are highly competitive and rapidly evolving, making it difficult to evaluate future prospects and potentially leading to price reductions, increased costs, reduced margins, and loss of market share 70. Research and development of drug candidates like VELDONA® is extremely expensive and complex, with no assurance of optimal balance between trial conduct, speed, and desired outcome, or that products will be competitive 71. The company's brand and product quality are crucial, and any failure to maintain them could lead to diminished brand value, adverse publicity, and negative financial impact 72. Health epidemics, such as COVID-19, could adversely affect business, operations, clinical development plans, timelines, and supply chains 73. Compliance with anti-bribery and anti-corruption laws, as well as export controls and trade sanctions, could limit the ability to compete in foreign markets and subject the company to liability 74. The company's common stock and warrants could experience wide fluctuations in market price due to various factors, including operating results, public float, and competition 75.
Management Priorities
Management's message to shareholders emphasizes a strategic focus on the commercialization and scaling of the AI Nose platform, while continuing to develop therapeutic assets based on the low-dose oral interferon program, VELDONA® 76. The primary strategic priorities include expanding partner-led deployments of AI Nose, increasing scent data volume to refine the smell language model, and advancing commercialization through a combination of hardware sales and service-based offerings 77. In parallel, management plans to manage healthcare-related programs, including VELDONA®, in a selective and capital-efficient manner, with an emphasis on partnerships and out-licensing 78. Management believes that cash on hand, anticipated net proceeds from product sales, and additional financing will fund operations over the short and medium terms based on the current plan 79. For the period from January 1, 2026, to March 30, 2026, the company sold 283,336 shares of common stock under the At-the-Market Offering Agreement, resulting in net proceeds of approximately $601,600 80. Additionally, on March 27, 2026, the company entered into a loan agreement with ASE Test, Inc. for an aggregate principal amount of NT$90 million (approximately US$2,820,000) 81, bearing interest at 2.5% per annum, payable in full one year after the drawdown date 82.
View Source Annual Report on SEC.gov ↗
References
- [1] Item 1, Business — Overview
- [2] Item 1, Business — Overview
- [3] Item 1, Business — Overview
- [4] Item 1, Business — Our Technologies
- [5] Item 7, MD&A — Revenues, Cost and Gross Loss
- [6] Item 1, Business — Our Business Model
- [7] Item 1, Business — Our Business Model
- [8] Item 1, Business — Our Business Model
- [9] Item 1, Business — Our Technologies
- [10] Item 1, Business — Our Technologies
- [11] Item 1, Business — Our Technologies
- [12] Item 1, Business — Our Technologies
- [13] Item 1, Business — Our Technologies
- [14] Item 7, MD&A — Results of Operations
- [15] Item 7, MD&A — Results of Operations
- [16] Item 7, MD&A — Revenues, Cost and Gross Loss
- [17] Item 7, MD&A — Revenues, Cost and Gross Loss
- [18] Item 7, MD&A — Revenues, Cost and Gross Loss
- [19] Item 7, MD&A — Revenues, Cost and Gross Loss
- [20] Item 7, MD&A — Revenues, Cost and Gross Loss
- [21] Item 7, MD&A — Revenues, Cost and Gross Loss
- [22] Item 7, MD&A — Operating Loss
- [23] Item 7, MD&A — Net Loss
- [24] Item 7, MD&A — Net Loss
- [25] Item 8, Consolidated Statements of Operations
- [26] Item 7, MD&A — Liquidity and Capital Resources
- [27] Item 8, Consolidated Balance Sheets
- [28] Item 7, MD&A — Key Developments in 2025
- [29] Item 7, MD&A — Key Developments in 2025
- [30] Item 7, MD&A — Key Developments in 2025
- [31] Item 7, MD&A — Key Developments in 2025
- [32] Item 7, MD&A — Key Developments in 2025
- [33] Item 7, MD&A — Strategy Outlook
- [34] Item 7, MD&A — Strategy Outlook
- [35] Item 7, MD&A — Strategy Outlook
- [36] Item 1, Business — Overview
- [37] Item 7, MD&A — Key Developments in 2025
- [38] Item 7, MD&A — Key Developments in 2025
- [39] Item 7, MD&A — Key Developments in 2025
- [40] Item 7, MD&A — Factors Affecting Our Business
- [41] Item 1, Business — Our Technologies
- [42] Item 1, Business — Our Technologies
- [43] Item 7, MD&A — Key Developments in 2025
- [44] Item 1, Business — Our Technologies
- [45] Item 7, MD&A — Research and Development (R&D) Expenses
- [46] Item 1, Business — Our Business Model
- [47] Item 1, Business — Our Business Model
- [48] Item 1, Business — Our Business Model
- [49] Item 7, MD&A — Liquidity and Capital Resources
- [50] Item 7, MD&A — Uses of Liquidity
- [51] Item 7, MD&A — Uses of Liquidity
- [52] Item 7, MD&A — Uses of Liquidity
- [53] Item 7, MD&A — Recent Financing
- [54] Item 9B, Other Information
- [55] Item 9B, Other Information
- [56] Item 1A, Risk Factors — Risks related to our limited operating history, financial position, and need for additional capital
- [57] Item 1A, Risk Factors — We have generated very little revenue from product sales and may never become profitable.
- [58] Item 1A, Risk Factors — AI Nose is a developing platform, and we may be unable to successfully generate meaningful revenue.
- [59] Item 1A, Risk Factors — The market for AI-enabled scent digitization and SmellTech solutions may not develop as we expect.
- [60] Item 1A, Risk Factors — AI Nose may fail to achieve acceptable accuracy, reliability, or performance across use cases and environments.
- [61] Item 1A, Risk Factors — The performance of AI Nose depends on data collection and model training, which may be insufficient or ineffective.
- [62] Item 1A, Risk Factors — Expansion into industrial and other non-healthcare environments may expose AI Nose to new and unforeseen risks.
- [63] Item 1A, Risk Factors — We are early in our development efforts of POCT and VELDONA candidates, and our business is dependent on the successful development of our current and future POCT and VELDONA candidates.
- [64] Item 1A, Risk Factors — Clinical product development involves a lengthy and expensive process, with uncertain outcomes.
- [65] Item 1A, Risk Factors — We and our collaboration partners have conducted and intend to conduct clinical trials for selected product candidates at sites outside the United States, and for any of our product candidates for which we seek approval in the United States, the FDA may not accept data from trials conducted in such locations or may require additional U.S.-based trials.
- [66] Item 1A, Risk Factors — Even if a current or future product candidate, including AI Nose, POCT and VELDONA, receives marketing approval, it may fail to achieve the degree of market acceptance by physicians, patients, third-party payors and others in the medical community necessary for commercial success.
- [67] Item 1A, Risk Factors — If product liability lawsuits are brought against us, we may incur substantial liabilities and may be required to limit commercialization of any approved products.
- [68] Item 1A, Risk Factors — Our reliance on third-party components and cloud infrastructure could disrupt AI Nose operations, and any errors, disruption, performance problems, or failure in their or our operational infrastructure could adversely affect our business, financial condition, and results of operations.
- [69] Item 1A, Risk Factors — We rely on the availability of licenses to third-party technology that may be difficult to replace or that may cause errors or delay implementation of our software and services should we not be able to continue or obtain a commercially reasonable license to such technology.
- [70] Item 1A, Risk Factors — As we are actively involved in marketing VELDONA Pet supplements within a fiercely competitive industry, any inability to effectively compete may adversely impact our operational results.
- [71] Item 1A, Risk Factors — Research and development of drug candidates such as VELDONA is extremely expensive and complex, and it’s difficult to evaluate the likelihood of the outcome of clinical trials, regulatory approvals, and our business and future prospects.
- [72] Item 1A, Risk Factors — If we fail to develop and maintain our brand, or the quality of our products that customers have come to expect, our business could suffer.
- [73] Item 1A, Risk Factors — Our business, operations, clinical development plans and timelines, and supply chain could be adversely affected by the effects of epidemics , including but not limited to COVID-19.
- [74] Item 1A, Risk Factors — Our business activities are subject to the Foreign Corrupt Practices Act, or the FCPA, and similar anti-bribery and anti-corruption laws of other countries in which we operate, including Taiwan, as well as U.S. and certain foreign export controls, trade sanctions, and import laws and regulations.
- [75] Item 1A, Risk Factors — An active trading market for our common stock may not develop, and the market price of our common stock and warrants could be volatile.
- [76] Item 7, MD&A — Overview
- [77] Item 7, MD&A — Strategy Outlook
- [78] Item 7, MD&A — Strategy Outlook
- [79] Item 1A, Risk Factors — Risks related to our limited operating history, financial position, and need for additional capital
- [80] Item 14, Subsequent Events
- [81] Item 9B, Other Information
- [82] Item 9B, Other Information
Analysis on 5/19/2026